,,ii  #aafth ,,congress  #ast ,session  
,s4 #bjae  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #bg1     
#bjai,mr4 ,scott of ,south ,carolina    
7for himself and ,mr4 ,manchin7         
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,health1 ,education1      
,labor1 and ,pensions  ,a ,,bill  ,to   
amend the ,higher ,education ,act of    
#aife to direct the ,secretary of       
,education to develop a plain language  
disclosure form for borrowers of        
,federal student loans1 and for other   
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,student ,loan      
,disclosure ,modernization ,act4  #b4   
,additional disclosures ,section        
#dcc7;a7 of the ,higher ,education ,act 
of #aife 7#bj ,u4,s4,c4 #ajhc7;a77 is   
amended--  7#a7 in paragraph 7#d71 by   
striking the origination fee and and    
inserting finance charges1 the          
origination fee1 and2  7#b7 by          
redesignating paragraphs 7#f7 through   

7#ai7 as paragraphs 7#g7 through 7#bj71 
respectively2 and  7#c7 by inserting    
after paragraph 7#e71 the following3    
7#f7 the annual percentage rate         
applicable to the loan1 taking into     
account--  7,a7 the amount of the loan2 
7,b7 the stated interest rate of the    
loan2  7,c7 the standard term for a loan
 of the same type2  7,d7 any fees or    
additional costs associated with the    
loan2 and  7,e7 any capitalization of   
interest on the loan2  4  #c4 ,plain    
language disclosure form ,section       
#dee7p7 of the ,higher ,education ,act  
of #aife 7#bj ,u4,s4,c4 #ajhg;e7p77 is  
amended--  7#a7 by striking ,each       
institution and inserting the following3
  7#a7 ,in general ,each institution  2 
and  7#b7 by adding at the end the      
following3  7#b7 ,plain language        
disclosure form  7,a7 ,development and  
issuance of form ,not later than #ah    
months after the date of the enactment  
of this paragraph1 the ,secretary shall1
 based on consumer testing1 develop and 

issue a model form to be known as the   
,plain ,language ,disclosure ,form that 
shall be used by institutions and       
contractors described in paragraph 7#a7 
to comply with the disclosure           
requirements of such paragraph4  7,b7   
,format ,the ,secretary shall ensure    
that the ,plain ,language ,disclosure   
,form-- 7i7 enables borrowers to easily 
identify the information required to be 
disclosed under section #dcc7;a7 with   
respect to a loan and loan repayment    
options 7including income-based and     
income contingent repayment71 with      
emphasis on the loan terms determined by
 the ,secretary to be critical to       
understanding the total costs of the    
loan and the estimated monthly          
repayment2  7ii7 has a clear format and 
design1 including easily readable font2 
and  7iii7 is as succinct as            
practicable4  7,c7 ,consultation ,in    
developing the ,plain ,language         
,disclosure ,form1 the ,secretary shall1
 as appropriate1 consult with--  7i7 the

 ,federal ,reserve ,board2  7ii7        
institutions and contractors described  
in paragraph 7#a72  7iii7 borrowers of  
loans under this part2 and  7iv7 other  
organizations involved in the provision 
of financial assistance to students1 as 
identified by the ,secretary4  7#c7     
,electronic system for compliance ,in   
carrying out paragraph 7#b71 ,secretary 
shall develop and implement an          
electronic system that may be used by   
institutions and contractors described  
in paragraph 7#a7 to generate a ,plain  
,language ,disclosure ,form for each    
borrower by--  7,a7 enabling            
institutions and contractors to enter   
personalized loan request information   
electronically2  7,b7 integrating       
appropriate data found in the ,national 
,student ,loan ,data ,system2 and  7,c7 
generating and integrating personalized 
borrower information4  7#d7 ,limit on   
liability ,nothing in this subsection   
shall be construed to create a private  
right of action against an institution  

or contractor described in paragraph    
7#a7 with respect to the form or        
electronic system developed under this  
paragraph4  7#e7 ,borrower signature    
required ,beginning after the issuance  
of the ,plain ,language ,disclosure     
,form by the ,secretary under paragraph 
7#b71 a loan may not be issued to a     
borrower under this part unless the     
borrower acknowledges1 in writing 7which
 may include an electronic signature71  
that the borrower has read the ,plain   
,language ,disclosure ,form for the loan
 concerned4  7#f7 ,consumer testing     
defined ,in this subsection1 the term   
consumer testing means the solicitation 
of feedback from individuals1 including 
borrowers and prospective borrowers of  
loans under this part 7as determined by 
the ,secretary71 about the usefulness of
 different methods of disclosing        
material terms of loans on the ,plain   
,language ,disclosure ,form to maximize 
borrowers' understanding of the terms   
and conditions of such loans4  4  #d4   

,report to ,congress ,not later than #b 
years after the date of the enactment of
 this ,act1 the ,secretary of ,education
 shall submit to ,congress a report that
 includes a description of the methods  
and procedures used to develop the      
,plain ,language ,disclosure ,form      
required under section #dee7p77#b7 of   
the ,higher ,education ,act of #aife 7as
 added by section #c of this ,act74